The start to the trading year is off with a bang as the Americans and Chinese re-enter trade negotiations which might see a positive outcome. The focus will be the FED meeting minutes later tonight at 21:00 SAST to see what was discussed and what the monetary outlook is going forward.
Market factors
Taking a closer look at the Daily chart of Wall Street we can see that the price action is now above our NFP target price with a beat on the Jobs number. The price action might find some resistance at 24089 which would be a first target price. If we see a positive outcome with the trade negotiations, then the price action might move higher still to a second target price of 24841.
Take note, if no trade agreement can be reached then a possible move lower is on the cards back down to 23442.
Source – MetaTrader5
Taking a closer look at the 4 Hour chart we can see a cup and handle reversal pattern and the price action pushed higher from the 23442 level. The price action still needs to move through the 50% Fibonacci retracement level to achieve our first target price of 24089.
Source – MetaTrader5
Image Source: Wolf of Wall Street
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